BMW’s supervisory board chairman said Thursday that the German automaker is headed in the right direction with its upcoming vehicle lineup, even as a recent profit warning continued to drag down the company’s stock price.
Speaking to reporters in Paris, chairman Nicolas Peter pointed to strong order numbers for BMW’s Neue Klasse vehicles, calling the demand “good news both for the manufacturer and for the suppliers involved in the project.” The Neue Klasse represents a sweeping lineup of new models designed to modernize BMW’s offerings amid growing pressure from Chinese rivals.
BMW’s shares dropped 5.3% by mid-afternoon Thursday, landing at their lowest point since November 2, 2020. The stock sat at the bottom of Germany’s blue-chip index after several major brokerages, including Citi and HSBC, slashed their target prices following the profit warning. Analysts pointed to prolonged softness in the Chinese market and the Iran conflict as key factors behind the guidance cut.
“The magnitude of this latest downgrade – the third predominantly China-driven downgrade in as many years – is greater than we had anticipated,” analysts at Berenberg wrote. They added: “This could prompt a more profound strategic reset under the incoming CEO,” referring to Milan Nedeljkovic, who stepped into the top role last month after longtime leader Oliver Zipse departed.
Industry analysts have suggested BMW may move to cut production capacity in Europe and speed up efforts to shift manufacturing closer to its key markets in North America and China.
Peter said BMW remains confident about the U.S. market, describing it as stable and significant, though he acknowledged the company is currently selling fewer vehicles in Europe than it produces there. He also noted that despite the fierce price competition among automakers in China — still the world’s largest auto market — there remains room for foreign manufacturers to compete alongside domestic brands.
